The completion of the recapitalization of the National Bank closed a circle for Greek banks and opened an new one, as in 2015 the domestic credit institutions are expected to rebound and record profitability, achieving higher levels in 2016.
National Bank’s return to profitability is expected to start in 2014. Prospects look positive for Alpha Bank as well. Piraeus Bank also expects better than the estimated results.
On the other hand, Eurobank is expected to report losses. NGB’s CEO, Alekos Tourkolias, mentioned for the first time the bank’s plans for a dividend, stressing that “the bank’s intention is to return part of the profits to its shareholders, after paying its preference shares and presenting a significant operational profitability.”
In regards to the delays in loan repayment, the rate is expected to reach 37% in the fall. However, if the estimates for growth in 2014 are correct, the rate will begin to fall by 2015. Moreover, Mr. George Provopoulos, the Governor of the Bank of Greece, said recently that the banks will have to take drastic measures regarding the issue of “red loans”, in order to help the healthy and extroverted businesses benefit.
When will the acquired funds show in economy?
The question now is whether the funds the banks raised will show in real economy or not. The chairman of the National Bank mentioned financing, a statement which indicates what the next steps of the banks will be in the coming months.
The National Bank still has sufficient and low cost liquidity, keeping a high percentage of the deposits in the domestic market, which will enable it to finance future opportunities in extroverted sectors with high growth rate…

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